An Overview of Bitcoin Anonymity

It’s less obvious to many, however, why Bitcoin is not really anonymous by default, and what can be done to de-anonymize Bitcoin users – and what Bitcoin users can do to reclaim their privacy.
Below is an advanced beginners guide to get a better understanding of the nuances of Bitcoin and anonymity.
Inputs refer to Bitcoin addresses used to send bitcoin from, and can only be spent using the private key associated to that address.
Each Bitcoin transaction transfers bitcoin from one or several inputs to one or several outputs (therefore, transferring bitcoin from one or several addresses to one or several addresses).
Second, Bitcoin addresses can be linked to real identities if these real identities are used in combination with the Bitcoin addresses in some way.